Paints & Coatings Market Size, Share & Trends Report

Paints & Coatings Market Size, Share & Trends Analysis Report By Product (Powdered, Solvent-borne), By Material (Acrylic, Epoxy), By Application (Architectural & Decorative, Non Architectural), And Segment Forecasts, 2020 - 2027

  • Published Date: Aug, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-1-68038-497-0
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 142

Report Overview

The global paints and coatings market size was valued at USD 146.2 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 4.3% from 2020 to 2027. The market is expected to be driven by the increasing product consumption in the construction, automotive, and general industries application sectors. Rapid urbanization and industrialization in the emerging countries, such as India, China, and Southeast Asia, are anticipated to fuel the product demand in various applications. However, the outbreak of COVID-19 may have a negative impact on market growth in the near future. The global market has grown moderately in the past few years in spite of various uncertainties, such as the economic slowdown of major economies, negative & positive influence of the low crude oil prices, fluctuations in the value of the U.S. dollars, the high growth rate of the U.S. automotive and construction industry, the tenuousness of the recovery of various European nations, and developments in regulatory norms globally.

The U.S. paints and coatings market size

Despite the fact that many of these factors are beyond the control of coats & glaze formulators, manufacturers, raw material and end product distributors, and marketers, the industry has rapidly responded exceptionally to these crucial changes in market conditions. This has been possible owing to the introduction of various innovative manufacturing processes and technologies that helped companies to instantly mitigate to numerous potential negative impacts and maximize their opportunities for carrying growth to the decorates & glaze products.

From the past decade, innovative formulation technologies have significantly facilitated to cater to numerous new and diverse consumer demands. Anticorrosive protection, low-VOC content coats, and nanocoatings are few of the recent innovations available in the present market. The introduction of nanotechnology has played a significant role in the industry. Apart from developing zero or low-VOC content formulations, industry players have used this technology to develop nano paints & coatings. This includes the introduction of ceramic or metals in various types of formulations.

The integrations carried out can be in the form of granules, free powder, or particles, which are then inserted in the finished product matrix. Some of the recent innovations that nanotechnology has enabled the formulators to develop include products that can conduct electricity or exhibit UV protective or self-healing properties. Apart from these, they are also highly resistant to scratch, mar wear, and corrosion. Hence, these advancements in technology and the introduction of new products are expected to augment future growth across the industry over the forecast period.

Strict governmental and environmental regulations, such as the Clean Air Act, the Occupational Safety and Health Administration (OSHA), and EU legislation, are restraining the market growth of the solvent-based product. However, these regulations are propelling the adoption of water- and powder-based paints and coatings, which is expected to positively impact market growth. Companies, such as Jotun, Arkema S.A., Axalta Coating Systems, and RPM International, Inc., are now focusing on developing eco-friendly coatings, such as water- and powder-based, to reduce their ecological footprints, which is further expected to boost the market growth in the coming years.

Product Insights

The waterborne segment led the market and accounted for the largest share of more than 37% in 2019. The increasing spending in the construction sector and consumer preference for eco-friendly products are expected to support the segment growth over the forecast period. Water-based paints and coatings are widely used in confined and poorly ventilated spaces. These coatings dry faster than solvent-based products due to the rapid evaporation of water from the coating layer.

The solvent-borne product segment is estimated to record a slower growth rate as compared to other product types owing to the stringent regulations concerning products with high VOC content. However, the rising application of solvent-based products in industrial and architectural purposes, owing to their lesser drying times and better functionality in open & humid conditions, is expected to fuel the segment growth over the forecast period.

Material Insights

The acrylic segment led the market in 2019 and accounted for the maximum revenue share of more than 42%. This growth is attributed to the excellent stabilization and weathering properties of acrylic products. Acrylic resins are widely used in water reducible and emulsion resins for the manufacturing of coats and varnishes. Its characteristics include thermoplastic nature, optical clarity, weather/UV resistance, and excellent dimensional stability.

Global paints and coatings market share

Also, acrylic resins are used more in wet coats, which have higher VOC levels as compared to powder-based coatings. Currently, owing to the development of advanced technologies, the business has witnessed a huge shift from solvent-based to water-based or powdered coats. Implementation of stringent regulations globally and rising awareness about VOC contents are expected to be the major factors driving the demand for water-based products, which, in turn, is anticipated to drive the demand for acrylic resins.

Application Insights

The architectural and decorative segment led the market and accounted for more than 57% share of the global revenue in 2019. Growing construction activities and significant development of rail and road infrastructure in various developing and developed countries, such as the U.S., India, China, Germany, the U.K., and European countries, are expected to drive the product demand in the segment over the forecast period.

The emerging region, such as the Asia Pacific and MEA, have witnessed strong growth in non-residential sectors, including FMCG, IT, telecom, and retail, resulting in increased demand for coatings. An increasing number of FMCG companies in India, China, and Singapore are expected to augment the market share of architectural & decorative paints and coatings in the near future. In addition, rapid industrialization, increasing government infrastructure spending, and increasing FDI is expected to boost the segment growth.

However, the COVID-19 pandemic has severely impacted the market growth in the building and construction sector. Stoppage of all construction projects, movement restriction, production halt, and shortages of labor to contain the COVID-19 outbreak has led to a decline in the growth of the construction industry, which, in turn, is anticipated to hamper the demand for paints and coatings in the architectural and decorative applications in the near future.

Regional Insights

Asia Pacific including China and Southeast Asia dominated the market and accounted for over a 35% share of global revenue in 2019. Rising construction activities and growing demand from the automotive sector in emerging countries, such as China, India, Japan, and Southeast Asia, are expected to drive the market over the forecast period. Furthermore, the easy availability of raw materials, coupled with less stringent laws regarding VOC emissions as compared to the law in North America and Europe, has provided huge growth opportunities to the market.

Low labor costs in the emerging nations of Asia Pacific has attracted many foreign investors to set up their manufacturing facilities in the region. Thus, the growing number of manufacturing facilities is boosting the construction activities in the region, which, in turn, is anticipated to propel the demand for paints and coatings over the forecast period.

Europe is the second-largest market and accounted for over 27% share of the global revenue in 2019. Expanding the construction sector in various countries, including the U.K., the Netherlands, Germany, Hungary, Poland, Sweden, and Ireland, is expected to propel the product demand over the forecast period. Increased funding from the EU, coupled with supportive measures, such as subsidies, tax breaks, and incentives taken by various governments, is anticipated to augment the growth of the construction sector in the region.

However, the recent outbreak of COVID-19 across the world has hampered the demand for paints and coatings majorly in the building & construction, automotive & transportation, and consumer goods applications. In addition, the unavailability of adequate substitutes for banned lead chromate, surging raw material prices, and stringent European Union regulations are further expected to hamper the market growth in the coming years.

Key Companies & Market Share Insights

The key players are rigorously competing and offering custom solutions for high-performance low-cost paints and coating requirements. Factors, such as strong geographical presence, distribution network, and extensive product portfolio determine a company’s market positioning. Major players focus on mergers & acquisitions, expansion of their manufacturing facilities, infrastructural development, investments in R&D facilities, and are seeking opportunities to vertically integrate across the value chain. These initiatives help them cater to the increasing global demand, ensure competitive effectiveness, enhance sales & operations planning, develop innovative products & technologies, lower the production costs, and expand customer base.

For instance, in November 2019, Akzo Nobel N.V. acquired Mapaero Coatings, a French aerospace coatings manufacturer, to strengthen its global position in aerospace coatings. In June 2017, The Sherwin-Williams Company acquired The Valspar Corp., a manufacturer of paints and coatings, to accelerate its growth strategy and expand its paints and coatings product portfolio. The global market is found to be significantly fragmented in nature owing to the presence of a number of manufacturers across the globe. Some of the prominent players in the paints and coatings market include:

  • The Sherwin Williams Company

  • Akzo Nobel N.V.

  • Axalta Coating Systems, LLC

  • PPG Industries, Inc.

  • RPM International, Inc.

  • BASF SE

  • Henkel AG & Company, KGaA

Paints & Coatings Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 150.7 billion

Market volume in 2020

45,851.58 kilotons

Revenue forecast in 2027

USD 202.7 billion

Volume forecast in 2027

57,262.96 kilotons

Growth Rate

CAGR of 4.3% from 2020 to 2027 (Revenue-based)

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Volume in kilotons, revenue in USD million and CAGR from 2020 to 2027

Report coverage

Volume forecast, revenue forecast, competitive landscape, growth factors and trends

Segments covered

Product, material, application, region

Regional scope

North America; Europe; Asia Pacific; China; South East Asia; Central & South America; Middle East & Africa

Country Scope

The U.S.; Canada; Mexico; Germany; The U.K.; France; India; Japan

Key companies profiled

The Sherwin Williams Company; PPG Industries, Inc.; Akzo Nobel N.V.; Nippon Paint Holdings Co., Ltd.; Axalta Coating Systems, LLC; BASF SE; RPM International Inc.

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Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global paints & coatings market report on the basis of product, material, application, and region:

  • Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

    • Waterborne coatings

    • Solvent-borne coatings

    • Powder coatings

    • High solids/radiation curing

    • Others (Specialty Coatings)

  • Material Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

    • Acrylic

    • Polyester

    • Alkyd

    • Polyurethane

    • Epoxy

    • Others

  • Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

    • Architectural & Decorative

    • Non-Architectural

      • Automotive & Transportation

      • Wood

      • General Industrial

      • Marine

      • Protective

      • Others

  • Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

    • North America

      • The U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • The U.K.

      • France

      • Italy

    • Asia Pacific

      • India

      • Japan

    • China

    • Southeast Asia

    • Central & South America

    • Middle East & Africa

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